Knowing 'How to Invest in an Unstable Economy' is crucial if you want to make it through rocky times. However clever and well-versed a person is in all things financial it is impossible to be 100% infallible in attempting to predict what might be a good or bad investment.
If an economy is also rather unstable - as is the case here in South Africa and across much of the rest of the world - investing becomes even harder.
This can, understandably, put many people off the idea altogether. It might be better to save for retirement - or some other important life goal expense - by stashing cash in a jar under the bed than taking risks with their hard-earned cash. Or at least sticking to a nice, safe savings account at the local bank.
However, in order to reach your long term financial goals investing your money, rather than leaving it to sit and do nothing, can still be a wise move, even if the local economy is on shaky ground sometimes. You can, and should, still consider investing, just make sure you do so with care. Here are some simple tips for making better investment decisions, even in an unstable economy.
How to Invest in an Unstable Economy
Think Before You Act
Investing even a smaller sum of money is not something to be taken lightly. You need to think, plan and perhaps even consult with an expert before you do anything. Unfortunately, the Internet makes it all too easy to make rash decisions. There are plenty of scams, get rich quick schemes and other offerings out there that are primarily geared towards getting consumers to part with their cash quickly.
Don't get us wrong, the Internet also offers excellent investment opportunities, but the good ones do so responsibly, providing you with all of the information and advice you need to make a properly informed decision before you ever part with a single rand.
How to Invest in an Unstable Economy
Determine Your Risk Comfort Level
Any form of investing, even in 'simple' bonds and other common investment tools comes with a certain level of risk involved. With some, the risk is low but the return is not as good as it could be were you willing to take on a little more. Calculated risks are frequently taken in all kinds of areas of life and business to in order to succeed, but everyone has a risk comfort level. What could you afford to lose, if it came to it? What would you lose on a particular investment if things did not work out? You need to determine these things before making a move.
How to Invest in an Unstable Economy
Get the Right Advice
If you happen to mention that you are considering investing you'll almost certainly get lots of advice right away. Advice from family, friends, coworkers and maybe even the nosy stranger who happened to overhear your conversation. And if any of these people are financial advisors, that's fantastic. But chances are that they are not, are they? They mean well, but just because they read some blogs/took a class 20 years ago/know a man who knows investments etc. does not mean that theirs will be very sage advice. To play it safe consult with a qualified financial advisor, not the chap next door who just reads FT a lot!
Find out now How to Invest in an Unstable Economy by giving us a call or filling in the form. A Specialist Investment Advisor will set up an appointment and together you can look at options available.